$BRZE (+0 %) Braze Inc. reported earnings

Q3 FY2025 results ended on October 31st 2024

- Revenue: $152.1M, +22.7% YoY

- Net Loss: $27.9M vs $30.7M loss in Q3 2023

- Non-GAAP Net Income: $2.5M vs $4.5M loss in Q3 2023

- Total Customers: 2,211, up from 2,011 YoY

CEO Bill Magnuson: "We continued to execute in the third quarter, delivering strong revenue growth and operating leverage while maintaining steady investment in our product, our ecosystem, and our go-to-market motion to continue positioning Braze as the leading cross-channel customer engagement platform."

🌱Revenue & Growth

- Subscription Revenue: $146.3M, +23.6% YoY

- Professional Services Revenue: $5.8M, +3.6% YoY

- Dollar-based Net Retention: 113% vs 118% YoY

- Enterprise Customers ($500k+ ARR): 234 vs 189 YoY

- Remaining Performance Obligations: $716.8M

💰Profits & Financials

- GAAP Gross Margin: 69.8% vs 70.7% YoY

- Non-GAAP Gross Margin: 70.5% vs 71.4% YoY

- Operating Loss: $32.6M vs $35.1M YoY

- Free Cash Flow: -$14.2M vs -$5.9M YoY

- Cash & Investments: $493.1M

📌Business Highlights

- Hosted Forge 2024 conference with over 1,000 attendees

- Announced BrazeAI agent (Project Catalyst) in development

- Expanded channel offerings to include LINE and RCS Business

- Named Leader in 2024 Gartner Magic Quadrant

- Notable new customers: Hugo Boss, LUSH Cosmetics, WeatherBug

🔮Future Outlook

- Q4 Revenue: $155.0M-$156.0M

- Q4 Non-GAAP Operating Income: $2.0M-$3.0M

- Full Year Revenue: $588.0M-$589.0M

- Full Year Non-GAAP Operating Loss: $5.0M-$6.0M

- Continuing focus on AI-powered customer engagement innovations